This was originally written on shivendramisra.com/blog
VeChain was started in June 2015 by the VeChain foundation and it had it’s ICO held in 2017. It aims to leverage the Blockchain technology and build a distributed business ecosystem. It is one of the oldest Blockchain companies and claims to be the leading Blockchain platform for products and information.
According to coinmarketcap.com, it’s on #17 with a market cap of 1.80 Billion USD, on the day of writing.
It is most popularly used to enhance supply chain management and also revolutionizes the amount of information the user can have of a particular product (where it was manufactured, who worked on it, were all the conditions fulfilled etc.)
The main sponsor of VeChain is the VeChain Foundation and the funds raised through the ICO further help in funding the development. According to their website their team operates in Agile and is adding more developments to implement projects rapidly across industries.
If you’ve been reading about it lately, you can probably see that it is going places which, by the way, is completely visible from the partnerships that it is able to make with companies like BMW, PWC and many more.
As the website mentions,
“The VeChain Foundation (hereinafter referred to as the Foundation) is a non — profit entity established in Singapore in July 2017. The foundation will act as VeChain’s sponsor entity, it is committed to VeChain’s development, construction and governance, ensuring transparency, advocating the safety and harmonious development of open source communities”
Though the team highly believes in the decentralized nature of the Blockchain, to avoid differences of opinion throughout the organization and to ensure the development of VeChain and formulation of strategy, it aims to adopt some of the traditional corporate principles to manage it better.
It has commissioned a third party to help set up foundation entities and their day-to-day management. It will setup functional Committees which includes the strategic decision-making Committee, the technical audit Committee, the remuneration and Nomination Committee and the public relations Committee.
1. Luxury Goods :
The VeChain has really been talked about when it comes to its use case in luxury goods. In simple words, it helps to curb counterfeit products in the industry and share more details about the product with the user than ever before.
How does it actually work? Well let’s say you go to buy a bag made by a luxury brand which has partnered with VeChain. First and foremost you will be able to check whether the bag is authentic or not. This can be done through the VeChain app by scanning the QR code or the NFC chip on the bag.
The system has stored all the information regarding the manufacturing of the bag on the Blockchain (who has worked on it, what material was used, what is the exact timestamp at which it was completed etc). Thus after ensuring that the product is real you can actually listen to the story that the brand wants to tell.
Maybe you find a video showing how that bag was manufactured. This builds a new way for brands to tell a story to their customers and we all know how important storytelling is in this age. This has the potential to generate more sales for brands.
Further this can be a service that the users can be charged for. I’m now starting to imagine how cool would it be to see how my IPhoneX was manufactured and who was working on it. Or maybe see a video of how my Harley Davidson (not that I own one: p) was made, what parts were used and how they fit in to make the bike so good.
Yes I know what you are thinking. Not every consumer will be interested in getting that kind of information or even paying for it but people who are willing to spend on high end goods, may also have that desire to find out more about the product which, makes it all the more exciting.
2. Liquor :
VeChain has also helped the government of China to establish a trace-ability system to track wines that are imported by China. China is the largest food importer in the world and people in China now are paying more attention to safety problems arising in the import of wine especially.
D.I.G(Shanghai Waigaoqiao Direct Imported Goods Ltd) has partnered with BitSE which is running the Blockchain distribution network for transportation of wine on VeChain.
All the information about the ownership, the temperature and humidity at the place of storage, the place where it is stored, the contents of the wine etc. are stored on the Blockchain. Since everything is stored on the Blockchain, which is immutable, user trust is assured. The user can again verify the authenticity of the product by scanning the QR code on the bottle.
3. Auto Industry :
VeChain has already secured collaborations with the Auto Industry behemoths such as BMW and Renault. It will not be surprising if other car companies also take the help of VeChain to provide the same authenticity and safety to their products. There are a lot of people involved in the auto sector and many records are still physically maintained which, makes it a perfect space to disrupt.
The cars can be tracked through their life cycle as they move from the manufacturer to multiple owners before being destroyed. It can help the makers track the mileage of the car.
Also according to VeChain’s website,
“The car has a unique ID on the VeChain platform, this digital profile contains all related data of the car and operates the digital profile via smart contracts which is very useful in the near future where insurers and financing institutions are involved”.
This completely blew my mind and just shows VeChain is really on to something.
4. Agriculture :
Being a citizen of India, I really know what agricultural problems look like. When you have a sluggish supply chain, a lot of intermediaries and exploitation of farmers, there is really a need of technological solutions like those provided by VeChain to China. China is also facing problems like insufficient product safety, low labor productivity etc.
Thus with the help of IoT and mobile devices the data about the weather conditions and details about the soil can be uploaded to the Blockchain which is immutable and then the data can be monitored in real time to provide valuable feedback to the farmers and improve the quality of produce drastically.
Clearly China can benefit from such technology but I think India can also see massive gains from such a technology keeping in mind the problems faced by the sector. VeChain has also partnered with Liaoning Provincial Academy of Agricultural Sciences in this regard.
5. Cold Chain Logistics :
According to VeChain,
“One of the greatest challenges cold-chain logistics face is resource allocation to maintain assurance of integrity, security, efficiency, transparency and sharing.”
And to solve these problems we have VeChain smart sensors to the rescue. The smart sensors can easily check the temperature and the humidity(among other things) which can then be uploaded to the Blockchain (thereby making it tamper-proof).
Brands and end consumers can then verify whether the product that claims to be stored and transported below a certain temperature was actually stored in that manner. If yes, then they can purchase and be confident about the quality and the condition of the product or else can refuse to buy it in case of any discrepancy.
Boom, the whole system just got a lot easier for all the parties!
Side note : Here is a small video that shows how can users verify the products(Liquor in this case), through the VeChain app :
So recently we saw VeChain doing a Rebrand to VeChain Thor which not only changes the name and the website but brings with it pretty important changes.
It brings a new Blockchain called the VeChain Thor Blockchain and all the VEN tokens will be converted into the VET tokens which will be used on the new Blockchain.
As you must be familiar with the twin token system of NEO and GAS, the VeChain Thor Blockchain, will run on the same model. There will be two tokens, VeChain and VeThor. Just like GAS is generated using NEO, VeThor will be generated using VeChain which will then be used to pay for the use of applications.
Thus all VeChain users receive 0.00042 VeThor for 1 VeChain token per day. Through these VeThor tokens, the users can pay for using the applications of VeChain.
This is a good info graphic showing all the partnership accomplishments which I got from this article by the VeChain Foundation.
In my opinion, VeChain can be a game changer and shall be a worthwhile investment. The partnerships that it has been able to score are really of high value and moreover the use cases of the technology of VeChain actually resembles the stories people use to put up of how Blockchain can revolutionize all the industries.
The team behind VeChain is highly capable and is executing at a very rapid speed. One very important point to consider is the partnership of VeChain and the Chinese Government, a government which is known for its not so good behavior towards ICOs, local exchanges and crypto currency in general. All these points make VeChain a good coin and not just another “shitcoin”.